Gold to shine brighter in 2024, prices may hit new high of ₹70,000: ICICI Direct
Gold price today: Gold rate rises on geopolitical tensions, rate cut hopes; what should be your strategy for MCX Gold? According to a report by ICICI Direct, Gold prices are likely to move towards a new high of ₹70,000. “Gold prices are likely to rise further on the back of weak dollar and decline in US treasury yields. Dollar and Yields nosedive in anticipation that the US Fed will start cutting rates as soon as March 2024," the report said.
The report further highlighted that the rising concerns over slower global economic growth and escalating geopolitical tensions in the Middle East may continue to make gold valuable as a hedge against uncertainties. Additionally, central banks are likely to continue with their buying spree, diversifying their reserves. Also read: First gold bond of 2024, SGB Series 2023-24 Series 4, opens for subscription next month.
Details here Presently, the price of the yellow metal stands at ₹63,060 per 10 grams on the MCX commodity stock exchange and approximately $2,058 per ounce in the global market. This comes as the rupee is trading above 83 against the US dollar. In the initial days of December, prices surged once more due to heightened global tensions in the Middle East.
Investors in emerging markets foresaw indications that the cycle of interest rate hikes had essentially concluded. Global central banks purchased ~337 tonnes of gold in Q3CY23, the second-highest third quarter on record. Moreover, central banks have purchased 800t of gold this year so far which is 14% higher compared to the same period last year, the report added.
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